Information and Fees

Debt Management Plans cover unsecured debts only.

While our advice is free, fees are payable if a debt solution is provided. A key benefit of a Debt Management Plan is the ability to only repay what you can afford each month. A consequence of this is that it will take longer to repay your debts, and creditors do not have to agree to freeze interest and charges.

Credit Rating

Entering into a DMP means contractual payments will be missed and your debt and repayment term could increase. Your credit rating will be impaired and it may be harder to obtain credit in the medium to long term as records are retained by credit reference agencies for six years.

Cooling Off Period

When you have activated your plan, either by signing the Client Information Form or by paying the Initial Fee you will be entitled to a 7 working day cooling off period in which you can contact us and we will refund any monies due.

Debt Management Plan Fees

An Initial Fee is the set up cost of your plan and is equal to two months disposable income and will be retained from your initial payment(s). Whilst you pay our initial fee, monies are not distributed to your creditors and this retained payment may place you in arrears. A Monthly Fee payable for our services will be charged thereafter, equal to 17.625% of your monthly agreed disposable income, subject to a minimum of £35 and a maximum of £100.

Initial fee

The Initial fee covers the work involved in setting up your plan, including:

• Reviewing draft payment programme.
• Preparing the financial statement.
• Calculating reduced monthly payments.
• Talking to your creditors and negotiating the terms of the management plan.
• This fee doesn't go towards your debts, so you'll go into arrears (or further into arrears) for the first two months. You will start repaying your unsecured debts with your next payment.

 

Monthly fee

From the third month onwards, we charge a monthly management fee. This fee covers the month-to-month running of your plan - including:

• Distributing payments to each of your creditors.
• Handling correspondence from your creditors.
• Any help or advice you need from our customer support team.
• Putting together and sending your statements

Advice

It is important to note that while the initial advice is free, should you enter a plan, fees may be payable.